Strengthening the Partnership: Sri Lanka and the IMF Discuss Economic Strategies

President Anura Kumara Disanayake held a virtual meeting with IMF Managing Director Kristalina Georgieva to strengthen the partnership between Sri Lanka and the IMF. The discussions highlighted Sri Lanka’s progress under the Extended Fund Facility, the importance of reform, and the need for collaboration to ensure economic stability and inclusive growth. Both parties committed to continue dialogue for a prosperous future.

On July 7, President Anura Kumara Disanayake engaged in a significant virtual meeting with Ms. Kristalina Georgieva, the Managing Director of the International Monetary Fund (IMF). The primary focus of the discussion was to enhance the partnership between Sri Lanka and the IMF, coinciding with Sri Lanka’s progress in its 48-month Extended Fund Facility (EFF) arrangement initiated in March 2023.

During the meeting, President Disanayake expressed deep gratitude for the IMF’s steadfast support during Sri Lanka’s recovery from the severe economic crisis of 2022. He noted the considerable strides made in economic reforms, macroeconomic stability, the welfare of vulnerable populations, and improvements in governance, while emphasizing the importance of collaborative efforts to bolster the economy amid global uncertainties.

Ms. Georgieva commended President Disanayake on maintaining macroeconomic stability and completing the third review under the EFF. She recognized the successful bond exchange and major portions of the debt restructuring. The Managing Director reiterated the IMF’s dedication to Sri Lanka’s economic objectives and accentuated the necessity for strong governance frameworks to navigate the current global economic landscape.

President Disanayake reiterated his commitment to advancing the IMF program, ensuring alignment with the aspirations of the Sri Lankan populace. He outlined the government’s priorities, which include enhancing social welfare expenditures, improving the governance of state-owned enterprises, and attracting foreign direct investment to mitigate debt vulnerabilities while promoting inclusive economic growth.

Looking to the future, Ms. Georgieva stressed the importance of adhering to the reform agenda to secure sustainable growth for Sri Lanka. She acknowledged that the path to recovery is fraught with challenges due to rapid global advances in technology and geopolitical dynamics. Furthermore, she emphasized the IMF’s role as a dependable partner in fostering inclusive growth and improving the standard of living for Sri Lankans.

Both parties concluded the meeting with a reaffirmation of the need for persistent dialogue and collaboration to achieve sustained stability and a prosperous future for Sri Lanka, committing to work jointly towards these common goals.

In conclusion, the dialogue between President Anura Kumara Disanayake and IMF Managing Director Kristalina Georgieva highlights the ongoing commitment to strengthening economic stability in Sri Lanka as part of the Extended Fund Facility. The discussions underscored the importance of continued reforms and international cooperation to support recovery after the 2022 economic crisis, with emphases on governance, investment, and the welfare of vulnerable populations. Both sides expressed a mutual commitment to a collaborative approach towards achieving sustainable growth.

Original Source: island.lk